but I disagree with not claiming depreciation because of the time value of money….the taxation of inflation. $100,000 now is worth much less than after 10,20,30 years. Even if you had to sell and pay CGT, you are give increase cashflow now, in the present.

Also I follow the principle when I buy a good asset that’s…[Read more]

you can do it several ways, the commissioner would allow

1. u estimate the cost of construction and you can claim the costs. Some costs are fixtures and fittings (40) and some are capital (43)

2. hire a quantity surveyor and he’ll estimate the costs for you

3. use an architect and he’ll estimate the costs for you

Div 43 is when you claim building depreciation
Div 40 is when you claim furniture

eg. You paid $100,000 for property
u sell for $150,000
Div 43 – u claim $10,000 of building depreciation
Div 40 – u claim $5,000 of fixture and fittings

When u sell, u have to do balancing adjustment of div 40 – lets assume its $3000

You assessable CGT is…[Read more]

These give good cashflows for further acquisitions

that’s the simplified version
but there are so many variables
need to know what your situation is
what entity did you use to buy this asset

if you claim Division 43, then the amount you claim will be equal the amount reduced by your cost base. this is assuming your asset was purchased after September 1985

if you claim division 40, then there will be a balancing adjustment from the time you dispose of the asset

can you tell me where i can find this information please cause it looks like the information i have may be erroneous

thanks

in regards to MVA, compulsory third party covers all damages to people whom you injury. the insurance company pays for all that. the one you should look out for is people who work for you at your home and slip and fall and break their neck. if they’re not covered and you’re not covered, then you’ll be in deep S#%t

ru sure?

I spoke to this tax lawyer and he told me a change in trustees will trigger a CGT event. The trustee is the owners of the asset and held in trust for the trust. If you change trustees, the ato will require a re-evaluation of the trust assets and wack a CGT on that?

that’s what I’ve been told anyway

I’ll have to look this up now

‘just do it’ – Nike

why do u want to put your home in a family trust
and when you say a family trust, what do you mean by family trust?

And yes, my accountancy fees are quite heafty, but the tax savings and asset protection are worth it

u should be concerned about litigation and tax consequences

look at the structure that suits u

unfortunately in this complex society we live in, buying assets in your own name is parlous

Did anyone watch the block, the sale prices of the block were GST inclusive. Ergo Kerry Packer had to pay the GST on the sale price to the ATO.

So if you were not sure and sold your property for $200k, you may be liable for a $18,180 tax bill, depending on…[Read more]

You can’t gear with SMFS ergo you need cash to fund your property. If you have more than 5 memembers in your SMFS then you have alot…[Read more]

It it is commercial and you are registered for GST, you will be able to claim the GST paid back in your BAS either quartlery or monthly depending on your situation

Land tax is an annual tax, but…[Read more]

If u borrow $100k now and pay IO for 10 years, u still only owe $100k in 10 years time which is significant less if u take inflation into account.
Warren Buffet talks about this all the time

If you know what you are doing, you can work out the cashflow for yourself.

I do not recommend it unless you know how to work out the cashflow yourself first. When you know that, then the software is good, cause it works out the cashflow of the property…[Read more]

thanks guys

the principles of investing in property is you make money when you buy.

if they abolish negative gearing, all you have to do is look to positively geared properties, which is what you should be doing anyway

negative gearing is a bonus for IP, but it is not the sine qua non of IP, the cashflow is

depreciator
deppro
washington brown